Thank you @henry for your integrity and your loyalty to NuShare holders and NuBit holders. It is much appreciated. I hope to see more initiatives from you in the future. It is regretful that you havenāt made more money than you have, but with the damage from the Augeas default now fully absorbed, hopefully we can get back to growth. The peg has been perfect for more than 2 months now, US-NBT transaction volumes are up 15% month over month, and in December we will release Chinese NuBits. NuShare liquidity, which more than anything is the strength of the peg, is many times what it was 6 months ago. The results we have had have clearly proven the liquidity engine model proposed by @JordanLee and embraced by shareholders works reliably. The only caveat is it has to be used, which the group that became known as Augeas chose not to do to any extent, in grave violation of shareholder policy. We are well positioned for growth.
Now letās discuss the practical matter of providing liquidity via NuLagoon Tube. I noticed there are presently about $5,000 in funds available for trading at NuLagoon. May I ask where those funds are coming from? Are they your personal funds, or are they investor funds?
It is in the interest of NuShare holders to have good liquidity at Tube. Prior to the Augeas default in May and June, Tube transactions were growing rapidly, and it appeared Tube was poised to become the highest volume NuBit exchange. We ought to help Tube grow again, because it provides an easy way to trade NuBits in volume.
Probably the most reasonable way for liquidity operations to help is by providing funds for liquidity at Tube. It may be best to structure this as a zero interest loan to Tube, perhaps in the amount of 30,000 US-NBT. It could be increased if there is demand for the liquidity. In some ways this isnāt very different from what we do with Poloniex. When we put shareholder funds on Poloniex, that is a zero interest loan of sorts.
@henry, how would you feel about taking a 30,000 US-NBT loan for a term of 6 months? The intent would be to extend the loan after six months, but putting a time limit on it gives us a chance to re-evaluate the needs of shareholders, NuBit users and Tube and make adjustments if needed.
I donāt know @henryās birth identity. While that is a concern, he has performed incredibly reliably and with great integrity for two years. He could have easily disappeared with all investor funds in June, but he didnāt. He returned them all. Part of the calculation is that Henry is a very competent and reliable partner for us, so we need to do what we can to encourage him to continue building with us. There is some risk there, but I think the potential rewards are greater. I hope he will continue to develop innovative and useful products as he has in the past. In reality, knowing someoneās birth identity is not likely to result in recovery of funds if a trusted person decides to take them and run. The notion of using government coercion against someone who has misused shareholder funds is largely impractical.
So, as Chief of Liquidity Operations, I am willing to extend a 30,000 US-NBT loan for six months to Tube at zero interest. We will also pay 500 US-NBT per month for this liquidity. @henry, is this the best way for us to support you, or would you like to suggest something different? We should create a contract on Daology that is hashed to spell out exactly what our expectations are. What date in the past should the 500 US-NBT payment per month be started?
NuLagoon used to get payments of around 5,000 US-NBT per month from NuShare holders. While the reduction to 500 US-NBT for fewer services is a misfortune for Tube, it is a 90% savings for NuShare holders. We have dramatically dropped the cost of liquidity, as @JordanLee predicted would occur. There are lots of successes occurring in the Nu network.
